Trying to figure out if to invest in a new business or in a Franchise? You’ve reached the right place. In this post, we make the basic Franchise vs Independent Business comparison.
Most people dream of living by their own rules, having the freedom to work whenever they please, and vacation whenever they desire.
Well, a Utopian dream of this sort sounds grand, but it’s far from the reality that most middle-class Americans live each day.
But, becoming a business owner or a franchise owner might actually get you closer to this lofty goal of working minimally. Either route you take will require hard work on your part, but after a bit of time, you’ll find that you have more freedom, less responsibility, and more money in the bank.
Owning a franchise or a business both take a great deal of discipline, responsibility, ingenuity, and know-how. Here, we’ll break down the two and give you the inside look so you can choose which path you’d like to pursue.
What is a Franchise Owner?
Most people new to the business world don’t fully understand the nature of what a franchise owner (franchisee) actually does. This is because not many entrepreneurs have ever thought in the direction of owning a franchise.
When you think of a franchise, most people might instantly think of places like McDonald’s, Wendy’s, Taco Bell, and the like. These companies already have established brands that are heavily advertised and have large customer bases. This takes the startup phase-out of the business model entirely and offers you a chance to be your own boss with a minimal, up-front investment price.
Additionally, a franchisor may also offer funding for you, making it even easier to secure a franchise location. And, you may even be able to purchase an existing franchise location, which further eliminates having to build a new location.
A franchise option basically makes it easy for people to become business owners, and generate more wealth by using the umbrella of an existing, successful brand.
The Business Model
One thing that you need to remember about starting a business, whether this is going to be a clothing store, a restaurant, or any other venture, is that most businesses fail within the first five years.
Now, not all businesses are failures, but the ratio of successful business owners is far less than successful franchise owners.
The most attractive feature of owning your own business, however, is you’ll be your own boss, make your own rules, and you get to dictate every aspect of your brand. This is the main reason why anyone goes into business for themselves; the ability to create full autonomy.
The nature of business varies widely, and this is all dependent on the type of products or services that you’re going to provide. Above all, a business will only be successful if it produces a product or service that fills the needs of its customers, has a good marketing strategy and creates a brand voice that resonates with a customer base.
Franchise vs Independent Business: Tools for Success
Whether you’re a franchise owner or a business owner, the tools that you’ll need to become successful are basically universal between the two.
You’re going to need a team of dedicated employees for either option. In addition, you’ll also need resources. Whether this is a fleet of work trucks, CRM software, project management teams, or tools and materials to produce your products, you’ll have to take the cost for all of these elements into consideration.
Among all the tools that will help to make you successful, you’ll also need to become an expert in your field. This is where a franchise owner has another edge, simply because an established franchise already has training programs in place to assist any employee in familiarity with their brand, their products, and their procedures for day-to-day operations.
A business owner, on the other hand, has to organically become an expert over time, as they begin their business and scale it for growth.
I hope this short Franchise vs Business Owner guide helped you understand where you want to go. Being a franchise owner and a business owner are both models to attaining the American dream of working for yourself and setting your own rules. No matter which option you decide, do your research prior to investing in any endeavor.